Fed Sends Market Mixed Messages

5/23/2013 5:18PM

Stocks in the U.S. shook off a steep global selloff that began on comments from Fed Chairman Bernanke and minutes from the Fed's suggesting it may pull back on bond buys this year. Jon Hilsenrath discusses the Fed's communication problem on the News Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... you ... should show AllThingsD global selloff in early trades and I want cause markets to shut up ... when analysis of the day's events will fit on Chief Economics correspondent on Hell's mouth is he a New York ... normally in Washington ... and they took the pursuit of love with with very grateful but you used its time ... what's what's been happening what you know I think what we've seen with the markets have been on a wild ride for the last twenty four hours and a lot of it has to do with the Fed but more specifically it has to do with the Fed's communications ... and is the big issues ... such as Andreesen but guess what I decide to sign off on a Nikkei last blast my right which is a big move ... some people say that's not only the fat but suddenly the Fed is buying her some losses and economic data and every problem but here's the issue ... that the Fed is trying to threaten me or hear they're trying to tell and that often in a civil ... right into that where it's ever been before ... so they're trying to tell people in the market that ... the mighty over the next few meetings ... pullback of bond buying program ... by a notch of course bond buying program is a big deal the market stock prices of going on in part because of it ... what they're trying to explain the same time is that once they start calling it back ... there to take a wait and see approach ... so what they end up doing is sending messages that we might ... we might not ... we might do it soon we might not do it we we might not due until later ... you know it might be they might be small and I think you see ... in the market ... is volatility as people are trying to digest ... a very complicated message that's coming at the central bank and all played out ... yesterday and twenty four hours ... in the stock markets ... and that's the kind of a week of the same thing I think over the next few months so that this this fall to one and the sentiment Vestas Vale also said ... they did let them out this is gonna happen yesterday so not gonna get a total lack of sense these can lead to this continuum volatility get what we the power off my one on how great spot was the fat and any spoken green speak out it was to most people incomprehensible including a lot of investing your time about what's in that the Fed is trying to speak clearly and it's hard to understand I mean imagine if they were using words that nobody understood and I think that they are learning from what some experience ... or what one experiences is that in from two thousandthree two thousandsix they said when one makes decided to raise interest rates are interest rates ... it did in very small predictable increments will look what we got Bentley got as a housing bubble that was in in anybody's interest ... in what the markets to have this kind of sense of ... certainty in or inevitability about what they're going to do next because they don't have a sense of certainty ... and don't have a sense of inevitability about what the internet but there was no they don't like it that way they do they want the market and no ... they see what the reaction function is what what other goals Dortmund unemployment down they wanna keep inflation steady ... they want people to know that they're committed to that there to keep using these policy levers to achieve it ... but because they're uncertain about how economies can avoid out ... the cake is uncertainty about what's good and even that was a low self esteem roundup of the same time the one that meant that must be some to some parameters around that that man of the market's Kami Bingaman investors want to know that when it does get that's not what's going to happen ... writes so and the message that I mean this are you happy to have to cut through the model and focus on the important points with Rene Kyi said is that ... in the next few meetings they're going to discuss taking a first step back ... that's exactly where they are and what the thing about doing ... yet there's a lot of the words that they're throwing out there that the next move could be up or down I mean it's cacophony heated ... but that's really what matters right now is that there's a debate ... about taking one step in the next few meetings ... and that's all we know not but it summed up beautifully but the bad news today with the economy might might one day be hell to ... live on its own without love it that's why in the long run with him they stop investors shouldn't these freaking out so much about this because the only pullback we think the economy is stronger and hopefully that's a world stock market stock investors can live